Tax collections in FY 22 touched 27 lakh crore, exceeded Revised Estimates of 25 lakh crore

Finance Ministry on Friday mentioned that tax collections throughout Fiscal Yr 2021-22 has crossed ₹27 lakh crore. That is ₹5 lakh crore greater than Price range Estimates of ₹22 lakh crore and round 34 per cent greater than in Fiscal Yr 2020-21.

Nonetheless, the Ministry does have apprehensions about collections in present fiscal due to the scenario arising out of Ukraine-Russia battle.

“Plenty of expertise is getting used the place GST figures at the moment are being matched with Earnings Tax figures and compliances are being ensured. So, all these have resulted in higher compliance and revenues each in direct and oblique taxes. To say {that a} comparable development would occur subsequent yr it gained’t be appropriate image,” Income Secretary Tarun Bajaj mentioned.

Direct taxes got here in at ₹14.10 lakh crore, a development of 49 per cent over final fiscal, which Bajaj mentioned was maybe the very best development charge in “very long time”.

The company taxes grew 56.1 per cent to ₹8.58 lakh crore, whereas private earnings tax grew 43 per cent to about ₹7.49 lakh crore. In oblique taxes, whereas Customs assortment zoomed 48 per cent to over ₹1.99 lakh crore, CGST and cess assortment was up 30 per cent at ₹6.95 lakh crore. Excise mop up, nonetheless, dipped 0.2 per cent to ₹3.90 lakh crore in the course of the 2021-22 fiscal. Total, oblique taxes grew 20 per cent to ₹12.90 lakh crore.

“Direct taxes are greater than oblique taxes (in 2021-22) and I hope this development will proceed within the coming years,” Bajaj mentioned.

Tax Compliance and administration

Bajaj mentioned that compliance has improved and in order administration. For direct taxes, greater than 7.14 crore ITRs (Earnings Tax Returns) filed for the Evaluation Yr 2021-22 (Fiscal Yr 2020-21) as on March 31, 2022, a rise of two.4 per cent in comparison with 6.97 crore ITRs filed for AY 20-21 (FY 2019-20) until Could 31, 2021. Total, common processing time for AY 21-22 was 26 days, nonetheless nearly each fifth ITR was processed on the identical day, when it was verified.

By way of GST, lot of enchancment has been seen when it comes to submitting of returns. Share of assesses submitting GSTR 1 on the finish of month rose from 54 per cent in September 2020 to 82 per cent in February this yr. Equally, GSTR3B submitting surged to 87 per cent in February from 74 per cent in September 2020.

Bajaj mentioned that greater variety of assesses submitting each the returns helped in curbing to faux invoices in an enormous method.

Tax Buoyancy and Tax-GDP ratio

Total Tax buoyancy, scale to match development charge of tax assortment with nominal development charge of GDP, has gone 1.91, which is greater than regular. By way of direct tax, tax buoyancy is 2.8 whereas for oblique tax it’s 1.13 per cent.

Bajaj additionally mentioned that the tax-to-GDP ratio jumped to 11.7 per cent — the very best since 1999. It was 10.3 per cent in fiscal yr 2020-21

Tax Assortment’

(In ₹lakh crore)

Revealed on


April 08, 2022